The CEO and co-founder of Circle, Jeremy Allaire has noted that the current financial system is “falling 99% of the time.”
Allaire highlighted that the existing financial services system is in urgent need of being completely overhauled. He unveiled this while testifying before the US Senate Committee on Banking, Housing, and Urban Affairs.
During a hearing dubbed, “Examining Regulatory Frameworks for Digital Currencies and Blockchain,” wherein Allaire represented the cryptocurrency industry amid 25 years of experience in building internet technology companies.
Circle’s CEO has been on exploring how digital assets and blockchain technology has the potential to democratize financial services on a global scale.
“Our existing financial system is in desperate need of transformation. We currently have a global system with limited access and exorbitant fees that impose a tax on real economic activity,” he said.
Allaire further noted that the economic system is failing 99% of the time to stop bad actors. This leads to the loss of trillions because the existing data and financial infrastructure are not secure enough.
He predicted that people would soon become accustomed to using sovereign and non-sovereign digital currency models in addition to public and private monies openly and interchangeably.
The CEO expects payments and value exchange to be commoditized and free services, in the same way, we share content or data, which will “ultimately return hundreds of billions of dollars of value to the real economy.”
Conclusively, Allaire reiterated the need for allowing innovators to develop in the United States and encouraged Congress to adopt national policies in order to establish digital assets as a new asset class, developing rules, exemptions, and legislation.
The CEO once noted in January via a Reddit AMA thread that the biggest problem in the crypto space is the uncertain clarity from the US Securities and Exchange Commission (SEC) over a distinct definition of different crypto assets.